| Nature/Purpose |
Line of credit for financing New
Machinery/ equipment / Vehicles for construction activities
|
| Eligibility |
Firms / Companies [including contractors] engaged in
construction activity with a minimum rating of SB-3 or equivalent
in new model.
|
| Amount of finance |
Minimum Rs. 25.00 lacs
Maximum Rs.5.00 Crores
[In
Delhi, Kolkata, Chennai, Mumbai, Hyderabad and Bangalore
maximum limit is Rs. Rs.15.00 Crores] |
| Facility |
Term Loan
|
| Margin |
15-25% in case of SBH 1 and SBH 2 borrowers
20-25% in case of
SBH 3 borrowers
|
| Repayment |
In
Equated monthly installments – Variable repayment program based
on cash flow of the company can also be considered if the borrower
so desires |
| Primary Security |
Hypothecation of the Equipment(s) financed from the
Bank finance.
In case of vehicles charge to be registered with RTA / ROC.
|
| Collateral Security |
Hypothecation
of other unencumbered equipments or mortgage of property to the
extent of at least 25% of the loan amount |
